ESSENTIALS OF VALUE 5
“On the Massachusetts Metropolitan Water-Works, the ad-
ministrative and expert services, with a small portion of the
legal services, amounted to 1.43 per cent of the cost of the work,
an unusually low figure, as there was very little litigation in
connection with the work.
“On the New York Water-Works the strictly administrative
expenses to the end of September, 1913, were 1.12 per cent of
the total disbursements to that date, but in addition, adver-
tising and the fees of special counsel and commissioners of
appraisal to the end of 1912, all in connection with the acqui-
sition of land, amounted to $2,966,000, equivalent to 3.39 per
cent of the total disbursements to that date, making the total
for general expenses, exclusive of police services, 4.51 per cent.
“On the Boston subways the general expenses, as given by
accounts, have amounted to 3.42 per cent of the total, but
some items usually classed as general expenses were charged
directly to the various sections of the work.
“It should be remembered that in all cases above cited, a
part of the general expenses have been paid out of general
funds and are not included in the above percentages.
“ In modern works in populated sections of the country there
is a strong tendency toward an increase in general expenses,
owing to the greater attention paid to policing and sanitation
where large bodies of men are employed.
“On the Metropolitan Water-Works the charge for police
services amounted to $211,000 for works costing $26,737,000,
equal to 0.79 per cent.
“On the New York Water-Works to the end of 1912, the
total disbursements amounted to $87,551,000, of which $1,369,000
was for police, equal to 1.56 per cent of the total.
“ The Committee believes that original conditions should be
considered in determining the proper percentage for general ex-
penses and that the allowance above suggested for police and
sanitation should be included only when similar expenditures
were actually made in the creation of the property under con-
sideration.”
Am. Soc. C. E. Committee, Contingencies. — “In making
an estimate of the cost of a projected undertaking, the ex-
perienced engineer adopts a policy of liberality with the inten-
tion of reaching the probable actual cost of the proposed work,
and even under such circumstances the actual cost is as likely
to exceed as to run below the estimate.
“This policy of liberality includes an addition to the com-
4G